Buy / Sell / Lease Commercial Properties Singapore

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Commercial Property Singapore presents various list of different types of commercial property for sale or for rent. The types include office, retail space, restaurant, industrial or warehouse or factory. In the pipeline, there will be medical suites, HDB shops and shophouses. When you have commercial property needs, do contact us and we will be most glad to assist you.

Commercial Property Singapore

Commercial Market

The commercial market in Singapore had a great time last year in 2015. Every area was tight, tight in supply, tight in Central Business District and rent was increasing. It was further boost by the residential property cooling measures and the commercial market attracted many investors.
This year, 2016, it is not optimistic, especially with the glooming outlook of the economy. Prices of oil were down, GDPs of major markets were reported weak.
The Asia market declined, likely due to the high prices and the economic slowdown. However, Singapore ranked in tenth position and was among the top 20 global cities for international retailers in a annual survey by a top international property agency. Hong Kong continues to be number one. This means Singapore remains to be of value to test new brands and for retailers seeking to have a hold in South East Asia.

The commercial market in Singapore had a great time last year in 2015. Every area was tight, tight in supply, tight in Central Business District and rent was increasing. It was further boost by the residential property cooling measures and the commercial market attracted many investors.
This year, 2016, it is not optimistic, especially with the glooming outlook of the economy. Prices of oil were down, GDPs of major markets were reported weak.
The Asia market declined, likely due to the high prices and the economic slowdown. However, Singapore ranked in tenth position and was among the top 20 global cities for international retailers in a annual survey by a top international property agency. Hong Kong continues to be number one. This means Singapore remains to be of value to test new brands and for retailers seeking to have a hold in South East Asia.
The government is trying to be as encouraging as possible and determined the that the development charges (DC) rates from 1 March to 31 August 2016 for the industrial sector to fall by an average of three percent. The largest decline is at Jurong West at 16 percent. The commercial sector had a correction of two percent in the DC rates.

Office Space

In Singapore, the banking sector give an indication of the office space rental environment. Standard Chartered axed 15,000 jobs last year, Royal Bank of Scotland cut a few hundred jobs. Recently, Credit Suisse announced that they are cutting 4,000 jobs on a global basis. One reason is the high operating costs in Singapore. Likewise, similar environment is faced in the other financial services and commodities.
As a result, rents were hit hard, as indicated by the Urban Redevelopment Authority (URA) Office Rental Index, rents in the city fringe was down 8.3 percent and in the central area, it was down 9.1 percent.

The demand of office space is forecast to be low and rent prices is expected to fall during the duration of 2016. Vacancy rate in Fringe areas is taking a heavier toll and seems to remains high at around 13 per cent.
Corporate tenants are taking of the advantage to move to more prime area. Supply has been abundant with the completion of South Beach in 2015 and will increase in 2016, when Duo at Beach Road and Guoco Tower joins in to contribute to a better supply of office space in the city fringe.

Retail Market

Tenants in the retail sector will be enjoying more choices as a supply of about 2.11m sqft will be added in 2016. Half of this additional supply comes from developments in the suburban area, which are mostly located in residential and commercial growth areas. Expansion is expected from Food and Beverage (F&B), health and beauty sectors.
With the tenants’ market, rents will be pressurized to be lower in 2016. Landlords are getting more creative to embrace retail mixing with entertainment to retain patrons.

Industrial

Manufacturers are scaling back on their operations as they face uncertainty in the economy. There has been an oversupply of industrial property space. By the end of 2016, 2.2m sqm of factory space is expected to be added. Vacancy rates are forecased to be in the range of 12 per cent or more.
Prices of industrial space is also expected to go down. Investors without holding power will have to lower their rental rates or sale prices.

The light at the end of the tunnel is the growth of emerging sectors in e-commerce and those which requires specialized logistics such as wine storage and cold chains. Another boon will come from the regional integration via ASEAN Economic Community and Trans-Pacific Partnership for the logistics sector.

Overall

There are still opportunities in the commercial property market for investors with a long term view. The current gloomy market is likely to present some great quality stock of property supply with attractive prices. Bearing in mind that the real estate cycle is cyclical; once the current situation is over, real estate will probably outperform the previous cycle.